“Main market themes remain unchanged: we continue to believe that the current market uncertainties are more driven by the fears surrounding credit than by the slowdown in growth. Fed rate cuts will hardly help the market rebound, as long as confidence between lenders and borrowers remains an issue. We maintain our cautious bias and significant exposure to alternative investments, through multi-strategy funds of hedge funds. We take special care in operational due diligence. We favour large cap equities against small cap and consider that strong sectorial bets should be avoided due to the high volatility across sectors.”